The latest manufacturing linked PV project tender by India’s SECI calls for 3 GW of solar projects with 1.5 GW manufacturing capacity. Pictured is the President of India at the Beating Retreat ceremony at Vijay Chowk in Delhi on January 29, 2019, a ritual followed since the 1950s to call the country’s troops back to their camps, marking the end of India's 4-day long Republic Day celebrations. (Photo Credit: Press Information Bureau; Govt. of India)
- SECI has launched a fresh tender seeking 1.5 GW annual manufacturing capacity linked with 3 GW of ISTS solar PV power plants
- The projects can be set up anywhere across the country and can also be installed parallel with setting up the manufacturing facility
- Modules to be used for the projects under this tender can be sourced from anywhere
- SECI will accept bids under this tender till March 18, 2019 and open the same on March 19, 2019
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The Solar Energy Corporation of India (SECI) has launched a fresh manufacturing linked PV tender for 3 GW of interstate transmission system (ISTS) connected PV power plant capacity with a 1.5 GW solar manufacturing plant. The manufacturing capacity relates to the production of cells and modules.
The ceiling tariff for solar power projects has been fixed at INR 2.75 ($0.039) per kWh. SECI will select winners through global competitive bidding (Phase II). Projects may be set up anywhere in the country. SECI will sign power purchase agreements (PPA) with the winners for a period of 25 years and sell the power to different buying utilities in the country.
The manufacturing capacity of 1.5 GW will need to be set up within 2 years. Successful bidders will be provided assured PPAs for 1 GW against 500 MW of solar manufacturing capacity. Projects will be set up on build-own-operate (BOO) basis. Minimum capacity to be quoted is 1 GW of projects linked to 500 MW of solar manufacturing. Bidding is allowed in a size of 1 GW solar plants capacity only, but any bidder will be also free to bid for all the 3 projects of the solar plant capacity in the multiples of 1 GW.
Projects may be set up in parallel with setting up the manufacturing facility, which means it won’t be mandatory to use self-produced modules for PV plants as part of this scheme. Developers may choose modules from anywhere to set up the projects.
Solar power projects may be commissioned over a period of 3 years from the date of the PPA coming into effect.
Manufacturing facilities set up under this tender should be able to produce cells that reach at least 20% average efficiency and 30% of the installed capacity should be capable of producing cells with 21% or more average efficiency. The average efficiency for modules needs to be at least 19%. Thin film modules produced in these facilities must have an average efficiency of 18%.
Bids can be submitted till March 18, 2019 and will be opened on March 19, 2019. Tender documents and other details are available on the Central Public Procurement Portal of the Government of India.
It all started in December 2017 when SECI issued an expression of interest to set up 20 GW of local integrated PV manufacturing capacity in India. It wanted to ascertain interest among companies to set up integrated manufacturing facilities for PV modules within India and develop projects using their modules (see SECI 20 GW Tender For PV Manufacturing Scheme).
The announcement was followed by a 5 GW solar manufacturing linked 10 GW PV project tender in May 2018, which then underwent some changes and was introduced with amendments bringing down the manufacturing capacity to 3 GW (see SECI Lowers Manufacturing Share In 5 GW Tender).
In late January 2019, the Ministry of New and Renewable Energy (MNRE) was reported by local media to have cancelled the only bid for the tender it received from Azure Power, with the intention to re-issue the tender which has now been done (see India To Re-Issue 5 GW Manufacturing Linked Tender).